"with interest rates at a low point, is not a good time to invest in bond funds. "

Intrest rates are difficult/impossible to predict.

"I would, however, like to "grow" that money at a better rate. I feel I must put it to better use if possible."

Try:1) Vanguard funds especially GNMA's.2) exchange traded funds like TGG and GIM will hedge your money against a fall in the US$ vs other currencies.3) You might consider 5%-20% or so in a precious metals fund, energy fund (like PEO), or natural resources fund.4)REIT mutual funds (from vanguard).5)10% in NLY AXM TEI if you want to do the "wild thing".

"I will not need for income for probably 5-7 seven years out."

You might do best buying dividend paying stocks. They might only yield 1%-5% now but if they are increasing their dividends 5 years from now it will yielding much more. This book has a decent list to choose from:

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